Oz Real Energy, Strata-X Energy to Merge
Real Energy, an Australian east coast-focused gas company and Strata-X Energy, have reached a binding agreement to pursue a merger, the two companies said on July 15 in a joint statement.
Under the deal, Real Energy shareholders will receive one new Strata-X share for three Real Energy shares that they own. The new entity will be called Pure Energy.
“The combination of Strata-X Energy and Real Energy (Pure Energy) represents a compelling opportunity to create a material gas business with significant holdings in the Surat and Cooper Basins, Queensland,” the companies said.
Pure Energy will hold 100% of Project Venus, which is located within the Walloon coalbed methane fairway and immediately adjacent to gas pipeline infrastructure in the Surat Basin. In addition, the merged entity’s 100% owned broader asset portfolio in Australia and Botswana presents further upside potential, they said. Pure Energy will have a total 11.8 trillion ft3 of prospective gas resources, 770bn ft3 of 3C and 353bn ft3 of 2C contingent gas resources. Strata-X operates a CBM project in Botswana.
"The merger of Real Energy and Strata-X Energy into Pure Energy has the goal to create the next ASX energy growth stock. With the huge resources in the three gas projects and the keys to unlock those resources, this goal is achievable," the companies said.
Pure Energy is also investigating the feasibility of building a methane to hydrogen plant in Gladstone, Queensland. “Looking ahead, one of Pure Energy’s goals is converting methane to hydrogen and value add graphite products using a hybrid methane pyrolysis method,” the companies said.